 The transfer of commercial property often entails complex negotiations and lending considerations, including those associated with the physical integrity and status of the property itself. In addition to market value considerations, the physical condition of property impacts the viability of development and repositioning plans.
Significant physical deficiencies, such as obsolete mechanical systems, failed roofing, or inappropriate fire protection systems directly affect the profit margins of investment properties. As a result, Property Condition Assessments (PCAs) are often required by lenders in order to secure financing. PCAs help property buyers by pointing out areas of needed repair or renovation, and in turn provide cost estimates that can be used in price negotiations or evaluation a property’s capital needs.
PCAs completed under ASTM standards provide estimates of probable costs for repair or replacement of components, systems or materials that require immediate attention (Deferred Maintenance Items). GZA’s approach to PCAs also includes an evaluation and analysis of anticipated short and long-term capital needs. Cost estimates associated with identified deficiencies as well as predicted longer-term repairs or replacements enable stakeholders to project reasonable budget figures when considering property values.
GZA visually evaluates the following components during a typical PCA:
Site Development
Drainage, pavements, sidewalks, retaining walls, fences, signage, loading/delivery docks, dumpster/compactor areas, exterior lighting, landscaping.
Building Structure
Foundation, superstructure, walls, floors, mezzanines, roof structure.
Building Exterior Systems/Finishes
Wall assemblies, cladding, glass/glazing, doors.
Roofing
Roof covering, flashing, parapet walls, penetrations, expansion joints, ancillary roofs, drainage, skylights, roof accessories.
Building Interior Systems/Finishes
Wall, floor, ceiling finishes with focus on condition of interior finishes, visible signs of distress, and evidence of water leaks.
Mechanical
Heating, ventilation, air conditioning, controls, exhaust, fresh air, energy management systems.
Electrical
Transformers, switchgear, distribution, branch wiring, emergency power.
Plumbing
Domestic water delivery, metering, backflow prevention, piping, hot water generation, fixtures.
Conveyance
Elevators, escalators, platform lifts.
Life Safety & Fire Protection Systems
Fire suppression systems, fire pumps, fire alarms, egress, emergency lighting.
Accessibility
General review of compliance with ADA guidelines for parking, exterior route, interior route, restrooms, elevators and accessories.
Having participated in property evaluations and assessments for more than 20 years, GZA's staff is positioned to help clients protect their investment interests using industry endorsed guidelines. Our staff includes trained professionals proficient in the field of assessments, cost estimating and engineering solutions, and is lead by some of the most experienced practitioners in the field.
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